Canadian Credit Score Ranges: What Each Number Actually Means

Credit Score Fundamentals

Canadian Credit Score Ranges: What Each Number Actually Means

Mar 20, 202623 min read

Your credit score is a three-digit number that carries enormous weight in your financial life. It influences whether you get approved for a mortgage, what interest rate you pay on a car loan, whether a landlord accepts your rental application, and even whether an employer extends a job offer. Yet most Canadians have only a vague understanding of what their score actually means—and what each number range signals to lenders and other decision-makers.

This guide breaks down the entire Canadian credit score scale from 300 to 900, explains what each range means in practical terms, identifies the thresholds that matter most, and provides actionable strategies for moving from one range to the next.

Understanding the Canadian Credit Score Scale

Canadian credit scores range from 300 to 900, with higher scores indicating lower risk to lenders. Both Equifax and TransUnion—the two national credit bureaus operating in Canada—use this range, though their scoring models differ slightly and may produce somewhat different scores for the same consumer.

Your credit score is calculated based on the information in your credit report. While the exact formulas are proprietary, both bureaus consider the same fundamental categories of information, weighted roughly as follows:

The Complete Canadian Credit Score Range Breakdown

Let us examine each segment of the Canadian credit score scale in detail, including what each range means for your borrowing power, the specific lender thresholds that apply, and practical strategies for improvement.

300 to 499: Very Poor Credit

A credit score between 300 and 499 represents the lowest tier of the Canadian credit scoring scale. Scores in this range typically indicate serious credit difficulties—multiple missed payments, defaults, collections accounts, or major derogatory events such as bankruptcy or consumer proposal.

What Lenders See: A score in this range signals very high risk. Most traditional lenders—including Canada’s Big Five banks (RBC, TD, Scotiabank, BMO, and CIBC)—will decline applications from borrowers in this range for unsecured credit products. The applicant has demonstrated significant difficulty meeting financial obligations.

Common Causes of Scores in This Range:
Scores between 300 and 499 are typically the result of one or more major negative events rather than minor credit management issues. The most common causes include active or recently discharged bankruptcy, consumer proposal in progress or recently completed, multiple accounts in collections, charge-offs on credit accounts, and judgments or liens on the credit report.

What You Can Access:
At this score level, traditional credit products are largely unavailable. However, options do exist. Secured credit cards—where you provide a deposit that serves as your credit limit—remain available from several Canadian issuers. Some subprime auto lenders will finance vehicles for borrowers in this range, though interest rates will be very high, often between 15% and 29.99%. Certain private mortgage lenders may consider applications, but at premium rates and with substantial down payment requirements.

Strategy for Moving Up:
The primary goal at this level is establishing or re-establishing a foundation of positive credit behaviour. Obtain a secured credit card and use it for small purchases that you pay in full every month. Address any collections accounts—either by paying them in full, negotiating settlements, or disputing inaccurate ones. Ensure all current obligations are being paid on time. Consider signing up for rent reporting to add positive payment history to your file.

500 to 559: Poor Credit

Scores between 500 and 559 represent the lower end of subprime territory. While slightly better than the very poor range, borrowers in this range still face significant limitations and higher costs when accessing credit.

What Lenders See: A score in this range tells lenders that the borrower has a history of credit difficulties, though perhaps less severe or more distant than the very poor range. The borrower may be in the early stages of credit recovery, or may have ongoing issues with credit management that have not yet been resolved.

Practical Impact on Borrowing:

Strategy for Moving Up:
At this level, consistent positive behaviour over time is the key to improvement. Continue using a secured credit card responsibly, keeping utilization below 30%. If you have a subprime credit card, make every payment on time without exception. Begin addressing any remaining negative items on your credit report through disputes or settlements. Avoid applying for new credit unnecessarily—each application generates a hard inquiry that can further lower your score.

560 to 619: Below Average Credit

The 560 to 619 range represents the upper portion of subprime territory and the beginning of the transition to near-prime. Borrowers in this range have more options than those with poor credit, but still face meaningful limitations compared to the average Canadian.

What Lenders See: A score in this range suggests a mixed credit history. The borrower may have had past difficulties but is showing signs of recovery, or may have a thin credit file that has not yet accumulated enough positive history to push the score higher. Lenders view this as moderate-to-high risk.

Key Thresholds in This Range:
Several important lender thresholds exist within this range. At 560, some subprime credit card issuers will consider unsecured cards without a deposit requirement. At 580, additional auto lending options become available, and some “B lender” mortgage products open up. At 600, a meaningful number of additional credit products become accessible, as 600 is a common screening threshold for many lenders.

Strategy for Moving Up:
This range is where strategic credit management becomes particularly impactful. Focus intensely on credit utilization—if you can get your utilization below 20%, you will likely see meaningful score improvements. Request credit limit increases on existing accounts (without generating hard inquiries when possible). Begin building credit mix by adding a different type of credit—if you only have a credit card, consider a small credit-builder loan. Avoid closing old accounts even if you do not use them frequently, as the age of your oldest account contributes to your score.

620 to 659: Fair Credit

A credit score between 620 and 659 is considered fair—below the Canadian average but above the subprime threshold for many lenders. This range represents a meaningful improvement in borrowing options compared to the ranges below it.

What Lenders See: Fair credit suggests a borrower who is managing obligations reasonably well but has room for improvement. The borrower may have some negative history that is aging off the report, or may have a relatively short credit history without negative marks. Lenders view this as moderate risk.

Practical Impact:
At this level, mainstream credit products begin to become accessible, though not at the best rates. Most credit card issuers will consider applications from borrowers with scores above 620, though premium rewards cards remain out of reach. Auto loan rates improve significantly compared to the subprime range—you might qualify for rates between 7% and 14% rather than 15% and above. Some A-minus mortgage lenders will consider applications at 620 and above, though not at the best rates. Lines of credit become available from some lenders, particularly credit unions.

Strategy for Moving Up:
In the fair range, refinement becomes important. Review your credit report in detail for any errors or outdated information that can be disputed. Focus on bringing all credit card balances as low as possible—ideally below 15% utilization on each individual card, not just in aggregate. Make sure you have at least two or three active credit accounts reporting to both bureaus. Set up automatic payments for all credit obligations to eliminate any risk of missed payments.

660 to 719: Good Credit

A score between 660 and 719 represents good credit—at or above the Canadian average. Borrowers in this range have access to most mainstream credit products and qualify for competitive, though not necessarily the best, interest rates.

What Lenders See: Good credit indicates a borrower with a solid track record of credit management. The borrower may have minor blemishes in their history—a late payment or two from several years ago, slightly higher-than-ideal utilization—but overall demonstrates reliable financial behaviour. Lenders view this as low-to-moderate risk.

What Opens Up at This Range:

Key Thresholds:
Within this range, 680 is a particularly significant threshold. Many A-level mortgage lenders use 680 as their minimum score for best-rate consideration. Several premium credit card issuers also use 680 as a screening threshold. Reaching 680 represents a genuine milestone in credit quality.

Strategy for Moving Up:
In the good range, the focus shifts from establishing positive behaviour to optimizing credit profile composition. Ensure your credit utilization is consistently below 10% across all cards. Maintain a diverse credit mix—ideally including a credit card, a line of credit, and at least one instalment loan (auto loan, mortgage, or personal loan). Avoid unnecessary hard inquiries by only applying for credit you genuinely need. Let your credit history age—time is a significant factor at this level.

720 to 779: Very Good Credit

Scores between 720 and 779 represent very good credit. Borrowers in this range are well above the Canadian average and qualify for most credit products at favourable terms. The difference in borrowing costs between this range and good credit can be substantial over the life of a major loan.

What Lenders See: Very good credit indicates a borrower with a strong, consistent history of responsible credit management. The borrower likely has a mix of credit types, low utilization, long credit history, and few or no negative marks. Lenders view this as low risk.

Practical Financial Impact:
At this level, you qualify for premium credit cards with the best rewards programs. Mortgage rates are at or near the best available. Auto loans are available at prime or near-prime rates. Lines of credit come with competitive rates and generous limits. Insurance premiums may be lower, as some insurers factor credit scores into pricing.

The financial impact of very good credit versus good credit is significant. On a $400,000 mortgage with a 25-year amortization, the difference between a rate of 5.5% (which a borrower with a 660 score might receive) and 4.8% (available to a borrower with a 740 score) amounts to approximately $32,000 in additional interest over the life of the mortgage.

Strategy for Moving Up:
Moving from very good to excellent credit requires patience and consistency. Keep utilization as low as possible—ideally below 5% when statements close. Never miss a payment for any reason. Limit credit applications to only those that are truly necessary. Allow your credit history to continue aging. Monitor your credit report regularly for errors and address any issues immediately.

780 to 900: Excellent Credit

A credit score of 780 or above represents excellent credit—the top tier of the Canadian scoring scale. Borrowers in this range qualify for the absolute best rates and terms available on every credit product.

What Lenders See: Excellent credit represents the lowest possible risk. The borrower has a long, consistent history of perfect or near-perfect credit management, with low utilization, diverse credit types, and no recent negative marks. Lenders compete for these borrowers’ business.

Is There a Difference Between 780 and 900?
In practical terms, the difference between 780 and 900 is minimal. Most lenders’ best rate tiers begin at 760 or 780, meaning a borrower with a score of 785 receives the same rates and terms as one with a score of 870. The primary benefit of scores above 780 is resilience—if a negative event occurs, a higher starting score provides more cushion before dropping into a lower tier.

Maintaining Excellent Credit:
The primary challenge with excellent credit is maintaining it over time. Continue all the behaviours that got you here: timely payments, low utilization, limited new applications. Monitor your credit report for errors or signs of identity theft—at this score level, fraud is your biggest threat. Be cautious about closing old accounts, as the resulting reduction in credit age can have a meaningful impact even at high score levels.

Credit Score Ranges Compared: A Complete Summary

Critical Lender Thresholds Every Canadian Should Know

While the ranges above provide general guidance, specific lender thresholds are what truly determine your access to credit products. These thresholds are not always publicly disclosed, but industry experience reveals consistent patterns.

The 560 Threshold

At 560, several important doors open. Many subprime credit card issuers begin considering unsecured applications. Some B-level mortgage lenders will review applications. Additional auto financing options become available. This is often the first meaningful threshold for Canadians rebuilding from very poor credit.

The 600 Threshold

The 600 mark is a widely used screening threshold across the Canadian lending industry. Many lenders use 600 as a preliminary filter—applications below this score may not even receive human review. Crossing 600 significantly expands the range of products and lenders available to you.

The 650 Threshold

At 650, mainstream lending becomes much more accessible. Most credit unions will consider applications at this level. Several A-minus mortgage lenders use 650 as their minimum. Personal loan options expand significantly.

The 680 Threshold

As noted earlier, 680 is arguably the most important single threshold in Canadian credit. It is the point at which most A-level mortgage lenders will offer their standard (though not necessarily best) rates. Most premium credit card applications will be considered at this level. This score effectively transitions you from “credit-challenged” to “creditworthy” in the eyes of most mainstream lenders.

The 720 Threshold

At 720, you enter the premium tier. Most lenders’ best or near-best rates become available. Ultra-premium credit card applications are considered. You receive the most favourable terms on personal loans and lines of credit.

The 760 to 780 Threshold

This is the final meaningful threshold. Above 760 to 780, there are no additional product tiers to unlock. You qualify for everything at the best available terms. Additional points above this level provide cushion rather than additional benefit.

1. Check your current credit score through a free Canadian credit monitoring service to establish your starting point.



2. Identify which threshold range you currently fall in and which threshold you are closest to reaching.



3. Focus your credit-building efforts on the specific factors most likely to push you past the next meaningful threshold.



4. Once you cross a threshold, take advantage of newly available products to further build your credit profile.



5. Repeat the process, moving from threshold to threshold until you reach your target score range.

How Quickly Can You Move Between Ranges?

One of the most common questions from Canadians working to rebuild credit is how long it takes to move from one range to the next. The answer depends on your starting point, the specific issues in your credit history, and the intensity of your credit-building efforts.

Moving from Very Poor (300-499) to Poor (500-559)

If your very poor score is the result of recent major negative events (bankruptcy, multiple accounts in collections), improvement will be gradual. Once you begin building positive credit history through a secured credit card and address collections accounts, you can typically move into the 500s within 6 to 12 months.

Moving from Poor (500-559) to Below Average (560-619)

With consistent positive behaviour—on-time payments, low utilization on secured or subprime cards, and no new negative items—you can typically move from the low 500s to the 560-619 range within 6 to 12 months. The key is avoiding any new negative marks during this period.

Moving from Below Average (560-619) to Fair (620-659)

This transition often happens more quickly because you have likely already established the positive behaviours needed. Continued on-time payments, strategic credit utilization management, and the aging of any negative items can push you into the fair range within 3 to 9 months.

Moving from Fair (620-659) to Good (660-719)

The fair-to-good transition is where many Canadians plateau. It often requires not just consistent behaviour but strategic optimization—adding credit mix, reducing utilization to very low levels, and allowing credit history to age. Expect this transition to take 6 to 18 months.

Moving from Good (660-719) to Very Good (720-779)

Moving from good to very good credit is often a matter of patience. The behaviours required are the same, but the score improvements become more incremental. Allow 12 to 24 months for this transition, assuming no negative events.

Moving from Very Good (720-779) to Excellent (780+)

The final push to excellent credit is almost entirely about time and consistency. If your credit profile is clean, diversified, and well-managed, your score will naturally drift upward as your history lengthens and any remaining minor blemishes age off. This transition can take 12 to 36 months.

Common Credit Score Myths Debunked

Misinformation about credit scores is rampant. Let us address the most common myths that mislead Canadian consumers.

Myth: Checking Your Own Credit Hurts Your Score

Checking your own credit score or pulling your own credit report is classified as a “soft inquiry” and has absolutely no impact on your score. Only “hard inquiries”—when a lender pulls your credit as part of a lending decision—can affect your score. Check your credit as often as you want without worry.

Myth: You Need to Carry a Balance to Build Credit

This is one of the most persistent and damaging credit myths. You do not need to carry a balance or pay interest to build credit. Using your credit card for purchases and paying the full balance before interest charges accrue builds credit just as effectively—while saving you money on interest.

Myth: Closing a Credit Card Helps Your Score

Closing a credit card can actually hurt your score in two ways: it reduces your total available credit (increasing your utilization ratio) and eventually removes the account’s age from your credit history. Unless a card has a high annual fee you cannot justify, keeping it open is generally better for your score.

Myth: All Debt Is Bad for Your Score

Having debt is not inherently bad for your credit score. In fact, having active credit accounts with low balances and consistent on-time payments is exactly how credit scores are built. The key is maintaining low utilization (below 30%, ideally below 10%) and never missing payments.

Myth: Income Affects Your Credit Score

Your income is not a factor in your credit score calculation. A person earning $30,000 per year can have an excellent credit score, while someone earning $300,000 can have a poor one. Credit scores measure credit management behaviour, not income level.

Equifax vs. TransUnion: Why Your Scores May Differ

Many Canadians are surprised to discover that their Equifax and TransUnion scores are different—sometimes by 30 points or more. This is normal and expected for several reasons.

Different Scoring Models: While both bureaus use the 300-900 scale, their scoring algorithms are not identical. They weight factors slightly differently and may use different versions of their scoring models.

Different Data: Not all creditors report to both bureaus. Some report only to Equifax, others only to TransUnion, and some to both. As a result, the underlying data in your two credit files may differ.

Different Timing: Creditors may report to each bureau on different dates, meaning your balances and account statuses may not align perfectly between the two reports at any given moment.

What To Do: Monitor both your Equifax and TransUnion reports regularly. Ensure the information in both files is accurate, and dispute errors with whichever bureau has inaccurate data. When working to improve your score, focus on the file that is weaker, as lenders may pull either report.

Building a Score Improvement Action Plan

Regardless of where your score currently falls, a structured improvement plan will help you move upward systematically.

1. Pull both your Equifax and TransUnion credit reports and review them in detail. Identify every negative item, every account, and every inquiry. Note any errors or inaccuracies.



2. Dispute any errors you find. Errors are more common than most people realize—studies suggest that up to 25% of credit reports contain at least one material error. Correcting errors can produce immediate score improvements.



3. Address the highest-impact factor first. For most Canadians, that means either fixing missed payments (by setting up autopay for all accounts) or reducing credit utilization (by paying down balances).



4. Add positive credit accounts if your file is thin. A secured credit card, a credit-builder loan, or rent reporting can add positive payment history to a thin file.



5. Set a specific score target based on the lender thresholds relevant to your goals. If you want a mortgage, target 680. If you want premium credit cards, target 720.



6. Monitor your progress monthly. Celebrate threshold milestones and adjust your strategy as your score improves.

Score Ranges and Specific Life Situations

Credit Scores for Newcomers to Canada

New immigrants to Canada start with no credit history—effectively invisible to the scoring system. Most newcomers will need to build credit from scratch using secured credit cards, newcomer banking programs (offered by most major Canadian banks), and potentially international credit transfer programs.

Newcomers can typically build a score in the 650-700 range within 12 to 18 months of arriving in Canada by following a disciplined credit-building approach.

Credit Scores After Bankruptcy

A first bankruptcy remains on your Equifax report for six years from the date of discharge and on your TransUnion report for six to seven years. During this period, your score will be significantly impacted. However, rebuilding can begin immediately upon discharge. Many post-bankruptcy consumers reach scores above 650 within two to three years of discharge through diligent rebuilding.

Credit Scores After Consumer Proposal

A consumer proposal stays on your credit report for three years after you complete the proposal or six years from the filing date, whichever comes first. The credit recovery trajectory is similar to bankruptcy, though many consumers find their scores recover slightly faster from a proposal than from a bankruptcy, all else being equal.

Credit Scores for Young Adults

Young Canadians often start with thin credit files that produce scores in the 600-650 range. The most effective strategy for young adults is to obtain a first credit card (many student cards have low approval thresholds), use it lightly and pay it in full monthly, and allow the account to age over time.

Frequently Asked Questions